All Forum Posts by: Megan Templeton

@Chad Reynoso

I would go with an attorney - your going to have more confidence that all the legal ramifications are known and observed in growing your business, having the right docs in place, staying up to date with with compliance regulations', etc. The cost is minimal if it saves you from an improper structuring/maintenance and the hassles that come with that down the road.

Thanks,

-Megan

Hi there! @Evan O'Brien

A real estate attorney can help with many parts of your real estate business - setting up your real estate entities, advising on the best paths for your business operationally and in some cases tax wise, assist with document prep for closings, contracts, etc, and assisting in the event of a lawsuit. Many real estate attorneys have one or two niches the specialize in (ex: closing attorney vs evication attorney) so its important to identify what your needs are and ask the right questions of the attorney. A few questions I would recommend are: 1. How long have you been practicing law? 2.What are your specialties within real estate law? 3. Do you work with a team - who will be my point of contact? 4.How many clients have you helped that were similar to mine? 4. Do you have references? 5. What is your fee structure and billing process? 6. What is your communication style and timeline 7. Are there any areas in my business you anticipate you cant help with? 8. Do you have referral partners like CPAs you trust and consult with? 9. Are you an investor yourself? 10. What do you see as the most important piece of my business right now?

Thanks,

-Megan

@Zachary Wells

You would need to work with a local CPA because this gets into probate with the deed being in the late husbands name.

Thanks,

-Megan

@Varun Vemulapalli

You would have to consult with a lender.

Thanks,

-Megan

Hi there! @Henry Lewis

For an LLC I would recommend using a third party registered agent (such as CSC) so your home isn't listed on the formation paperwork and getting a virtual mailbox or PO box for your mailing address.

Thanks,

-Megan

@Riyaz Ali

You would need local atty for this one. 

Thanks,

-Megan

Hi there! @Wes Phelps

if you are going to actually live in the home, I wouldn't use an LLC. You get many benefits as a primary homeowner but in order to qualify it has to be your primary residence and title has to be in your name. When the home is in an LLC, the property is technically not owned by you (its owned by the LLC) so you cant claim homestead, get the tax breaks, etc. If you have no intention of renting it out, leave it in your name so you can save on taxes. If you moved it into an LLC to claim business expenses but didn't truly rent it out like a business, in the event of an audit, the IRS would see the LLC as a sham and hit you with all kinds of issues.

Thanks,

-Megan

Hi there! @Sean Beyrouthy

I would recommend purchasing directly into an LLC from the start. This will give you protection from the start of your biz. Additionally, creating the LLC will allow you to easily detail all the ins and outs of the partnership in the operating agreement to avoid any conflict or misunderstandings with your partners. To be noted, depending on if a lender is involved, it could be complicated/costly to move the property to an LLC post closing. Lastly, umbrella policies are a great back up line of defense but you don't want to trust it as the primary defense. Insurance companies are in the business of making money so they are going to have some claims they don't pay out on. Have an LLC protects you in the event the policy finds an exception and doesn't cover the issue.

Thanks,

-Megan

@Renny F.

Depending on the state you are in, a realtor may not be legally allowed to provide all closing docs. I would go with an attorney - your going to have more confidence that all the legal ramifications are known and observed. The cost between the two is minimal if it saves you from an improper transfer and the hassles that come with that down the road.

Thanks,

-Megan

Hi there! @Clay Couvillon

This is dependent on if there is financing in place and type of property. For properties with a loan, you will need to work with your lender on moving the property to ensure you don't trigger the due on sale clause. There is an exception, the St Germain Act, that can be used to transfer some properties (less than 4 unit properties) that have a loan but it has certain components you would need to be sure to follow. It can be an easy transition but you will need to do your due diligence on the above first. Typically transfers can take anywhere between 1-6 weeks depending on the county the property is in.

Thanks,

-Megan